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Monday, September 5, 2011

How to Open an SSPN account

If you Google SSPN, you'll most likely get results of the official SSPN website http://www.ptptn.gov.my/web/guest/simpanan. Now being one of those folks who rarely used Bahasa Melayu since graduation, you might thought of reading the English version only to find not only a host of errors but also plenty of dead links. So how to go about this SSPN thingy when the information on their website is of little help? I won't say there was no help because I managed to scrutinize some information out of so many redundant tabs and links. So how? a) Ask friends and family who had an SSPN account or b) be the social guinea pig. I choose both a and b. What ever written here is mostly translated from SSPN's website. Any additional information by ME will be written in GREEN color.

WHAT IS SSPN?

Skim Simpanan Pendidikan Nasional (or SSPN) is the National Education Savings Scheme. It is a saving scheme by the National Higher Education Fund Corporation (Perbadanan Tabung Pendidikan Tinggi Nasional or PTPTN). It's a savings account for those who wish to save money for their tertiary education. To make it short and simple,

PTPTN = Loan
SSPN = Savings

According to their official website, from 1st January 2012 onwards, all students who wish to apply for PTPTN loans MUST(WAJIB) have an SSPN account with a minimum savings of RM20.00

WHO CAN HAVE AN SSPN ACCOUNT?

SSPN is open to ALL MALAYSIANS. There are generally 3 groups of classifications.Group 1: Parents or Guardians or other Malaysian citizens to any Malaysian citizen aged 18 and under and can keep the account open up to 28 years of age.Group 2: Malaysians above the age of 18 having the choice to open their own accounts or by their parents or guardians.Group 3: Malaysians above the age of 29 must open their own account.

WHAT DIFFERENCE IS SSPN FROM NORMAL BANKS?

Income Tax Relief subject to net savings during that particular year. This only applies to
a) PARENTS or LEGAL GUARDIANS who opens the account for the benefit of their child to the maximum of RM3,000.00 RM6,000.000 (based on Bajet 2013).
b) PARENTS with SEPARATE TAXATION that opens SEPARATE ACCOUNTS for the SAME child are given SEPARATE tax relief to the maximum of RM3,000.00 to each parent.
c) PARENTS with JOINED TAXATION that opens SEPARATE ACCOUNTS for the SAME child to the maximum of RM3,000.00
Individuals who open their own SSPN account is NOT ELIGIBLE. Higher annual dividends. SSPN's annual dividend for year 2009 is 2.5% while banks interest was at a maximum of 1.56%. I don't know where they got their data but lets take their words for it for the time being. I checked with a relative of mine who happens to have an SSPN account and according to him for year 2010 the dividend rate was a mere 0.9%. Yup... not even 1%Insurance coverage. This applies to depositors between the ages of 18-65 years old, beneficiaries between the ages of 1 day old - 28 years old AND with a minimum balance in the SSPN account of RM1000.00 at any one time.It is however not mentioned if this applies when the beneficiary and depositor is of the same person. The premium will be borne by PTPN. Insurance in a form of Ringgit to Ringgit coverage for beneficiaries who live with their parents / legal guardians and SSPN accounts is opened by their parents / legal guardians and RM100,000.00 whereby the beneficiary is an orphan living in an orphanage and an SSPN account opened by the principals or management representative of the orphanage. Charities (Khairat) or death compensation of RM2,000.00 to depositors and RM500.00 to beneficiary.Matching Grant. This is a financial incentive depositors (parents or legal guardians) whom family's monthly income (salary) does not exceed RM2,000 per month. Total matching grant (not exceeding RM10,000) will be determined after taking into account the SSPN and savings deposits. Matching Grant rates will be greater if they have a higher savings and a longer saving period.

HOW DO I OPEN AN SSPN ACCOUNT?

You can open an account at the PTPTN service counter at One Stop Center in KL Sentral OR at the following banks :-

Bank Simpanan Nasional,

CIMB Bank,

Agro Bank,

Bank Rakyat,

Bank Islam or

Maybank

You will require the following documents:-

3 copies of Account Opening Application Form (Borang Permohonan Pembukaan Akaun) which can be obtained online (click here to download) OR can be obtained FREE at One Stop Center or Banks listed above.

Duplicate copy of the depositor's MyKad, military ID or Police ID

Duplicate copy of the beneficiary's birth certificate or MyKid or MyKad

Duplicate copy of certificate of adoption (only for legal guardians)

A minimum of RM20.00 is required to open an account. Below is a SAMPLE. DO NOT PRINT THIS as it will NOT be accepted by SSPN. You must either download the form from their official website OR obtained free of charge from the One Stop Center or participating Banks.

SSPN Sample form (front side)

SSPN Sample form (back side)

Translated version of SSPN form

After you have opened your SSPN account (about a month or so), you will receive a letter from SSPN along with a member card. On the member card will state the depositor's name, beneficiary's name and the account number. This number is important as you will need it to check your statement online,income tax exemption, deposit, withdrawal or closing of account.

HOW DO I DEPOSIT MORE MONEY INTO MY SSPN ACCOUNT?

Go to any of the 6 bank branches listed above and obtain the SSPN deposit slip which looks something like this.

SSPN Deposit Slip (front side)

SSPN Deposit Slip (back side)

This one is obtained from CIMB Bank. Fill out the form and bank it it with the bank teller. For Maybank account holders you have the extra option of Internet banking (Maybank2u.com). Even though SSPN's official website states that CIMBClicks users are able to make online deposits, HOWEVER I have checked with CIMB and they currently do not have such service...

How to fill in SSPN account number for the first time

JANUARY 2013 UPDATE

Based on the Bajet 2013, the maximum tax relief for SSPN has been increased to MYR6000.00 HOWEVER this tax relief only applies to Group 1 (Parents or Guardians or other Malaysian citizens to any Malaysian citizen aged 18 and under and can keep the account open up to 28 years of age.) For details please click this link (opens a new window)

You mentioned subject to net savings for that particular year. Does that mean if I have RM1K in savings in 2012 and continue maintaining it, I will be entitled for tax relief for subsequent years as well?

Jeff, for example you deposit in RM1000 anytime between 1 Jan 2012-31 Dec 2012. You get tax relief when file it this coming April. HOWEVER, if this year (1 Jan- 31 Dec 2013) you did not deposit any amount at all, you will not get tax relief when you file your taxation in 2014. Hope this helps.

TCW, yes you are correct. For year 2012 onwards tax relief has been increased to RM6000.

Randy Kenzo, I'm not an SSPN officer nor do I work with them. But to my knowledge you must have an SSPN account before you apply for the PTPTN loan. HOWEVER I do not know if there is a required time frame. I'm sorry, it's all I know.

Is it really a month or so for the SSPN card to arrive ? I'm worried now, cuz I opened an SSPN acc at CIMB Bank on 11/4/13, n till now I haven't receive the card ... Now only I found out that, they should give me a SSPN Deposit Slip for the new opened acc but they didn't give me the slip on that day I open the SSPN acc, they just gave me the 'back copy of the application form' only ... N my college intake is nxt week n I need atleast give the college a photostat copy of the Slip Deposit / SSPN Card but the problem is I don even have both ... I only have the 'back copy of the application form', thats all ...Should I go back to the CIMB n ask for the slip ?

I did went to CIMB this morning n I did got back my Slip Deposit ... N erm, bout the card ... Really ? 1 month or so ? I noticed that if the SSPN acc is open at Maybank, the card arrive within 1 week ...

D10 NET DEPOSIT IN SKIMSIMPANANPENDIDIKAN NASIONAL(SSPN)Amount deposited in SSPN by an individual for his children’seducation is deductible up to a maximum of RM3,000. Theallowable deduction is limited to the net amount deposited in thatbasis year only.Example: For year 2011, Balance brought forward: RM4,500. Totaldeposit: RM2,000. Total withdrawal: RM1,500.Allowable deduction is RM500 (RM2,000 – RM1,500). The balancebrought forward of RM4,500 is not taken into account. Paragraph46(1)(k)